The federal government has returned to the bargaining table with its largest union with an offer of a pay raise and a proposal to defuse the politically fraught sick leave reforms with an “employee wellness” plan that would be discussed separately from ongoing contract talks.

PSAC is the largest union, representing more than 90,000 public servants at five bargaining tables, and has been the most intractable on changes to the existing sick leave regime. A deal with PSAC could set the pattern for other unions.

The talks opened last week with a “revised” Liberal proposal to take its sick leave reforms off the table to be dealt with in a separate and independent process.

Treasury Board President Scott Brison has said he wants to “modernize” sick leave. Until now, the Liberals have stuck with the previous Conservative government’s plan to replace the existing regime, which gives public servants 15 days of sick leave a year. Unused leave can be banked and used later. All the unions signed a solidarity pact when this round of bargaining began more than two years ago, refusing any concessions on sick leave.

Treasury Board is proposing a memorandum of understanding to create a task force with a mandate to improve “employee wellness” and ways to reintegrate employees back to work after prolonged absences due to illness and injury. It’s unclear if the government is still pursuing a short-term disability plan, but it wants the task force to examine a range of issues around disability leave and income replacement.

The task force would create a steering committee and technical committee within 90 days of signing a collective agreement. The steering committee would include union and management representatives.

The task force will be examining a range of wellness issues, such as ways to eliminate harassment, discrimination, workplace violence, bullying and abuse of authority.

It will examine the barriers to full income replacement when employees are sick or injured, the range of medical conditions, work and personal situations such as chronic and episodic illness, privacy issues and options for alternative medical treatments. The task force’s recommendations could be brought back to future bargaining rounds.

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PSAC has pushed for the existing system to remain or be improved. It has been adamant about keeping sick leave provisions enshrined in collective agreements, guaranteeing people get paid when they are sick and allowing public servants to keep the sick leave they have banked over the years.

Sources say Treasury Board has also increased its long-standing wage offer of 1.5 per cent over three years to 2.25 per cent over three years, far less than PSAC’s original wage demand for more than nine per cent over three years.

PSAC and Treasury Board have been meeting in a last-ditch bid to reach a deal since last week. Some consider the negotiations a do-or-die round.

PSAC president Robyn Benson previously said this could be the last round of talks if the parties don’t make progress. The next step would be the appointment of a Public Interest Commission to act as a conciliator. The union would also have to call a strike vote.

The Canadian Association of Professional Employees was scheduled to begin another negotiating round this week but with PSAC talks underway was asked to reschedule. The union representing federal lawyers were also asked to reschedule but those talks are proceeding.

PSAC and Treasury Board reached a similar a memorandum of understanding under the previous Conservative government on improving mental health in the workplace. Within the public service, mental health claims account for nearly half of all disability claims.

That plan was accepted by the all 18 unions and management, and a task force developed the mental health strategy now being rolled out in departments. Treasury Board officials wouldn’t comment on the latest proposal citing the “confidentiality of the bargaining process.”

“We have a strong mandate to implement an ambitious agenda focused on the middle class, and we know the important role our public servants will play in delivering on our commitments, said Jean-Luc Ferland, spokesman for Brison.

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